2014/01/12

The BRICSare a very concrete and current example that the economy is actually only a facet or a mask artificially stuck on politics. The rhetoric that carries each of them is however built on the opposite. Let’s summarize the approaches and see how and why the acronym MINT (Mexico Indonesia Nigeria Turkey)is trying to emergetoday, together with BRICS bashing.

An economist looks in the rear mirror (that is to say in the past) at quantifiable results from “economic actors” therefore reduced to a brief quantification, then sets up what he deems to be a representative image of some salient aspects and uses elements of a doxaiso that he can draw his conclusions on the assessment of the moment. If he dares then to talk about the future, it is in order to point out the economic policies which should according to him be deployed as a consequence of this assessment, and of the principles arising from his doxai.

The current powers are massively accumulating gold, benefiting or causing gold price suppression. We can observe very different strategies among them:

BRICS countries, and China in particular, are adding gold into their official monetary reserves but also are officially and strongly encouraging their people to buy and own gold (and see here: even if a simple gold-backed yuan is not the solution to successfully reform the international monetary system, this report is a point in favor of the strongest interest in gold from BRICS governments)

The U.S. and U.K. countries (central banks, bullion banks) are publicly discouraging the people to own or buy gold and Bernanke couldn't even remember the reason why the Fed managed gold reserves; but since 2008 and much more since last year JPMorgan has built a strong position in the gold market (as a bullion bank), and is accumulating it at high volume

Euroland countries are in a middle position: not publicly advocating gold, not discouraging it; but ECB and european central banks are buying it again, and/or stopped gold leasing (and see here)

You might ask what will happen after the next big move: the new monetary power will be shared between the main gold owners, according to their stocks or geopolitical alliance, and BIS status will be redefined; yes, but then?

I'm wondering what could happen then in the U.S., a state where this next big move will inevitably signal a new era to the society currently in such a difficult and politically dangerous position. Wall Street's Banks' gold will attract the american people's attention, desire and violence.

The best solution for the US people would be to open the Mint and to rebuild a new gold system based on the New Austrian School of Economics' detailed recommendations. But don't hold your breath: this would mean for the US bankers to share power with the people, and they are not individuals of this kind. They will not give this gift unless a new state is proclaimed because they are scared of losing their favoured position. Remember: gold means liberty.

The remaining solution would then be to augment the fascist trends, i.e. to make even closer JPMorgan (and the TBTF banks) and the police state, in deploying a permanent and official protection by the state for these bankers and/or by allowing them to create their own militia.

But we could also think further: JPMorgan could officially merge with the state, to emerge from the deep state and to become a visible part of the new state. Mainly, it could replace or merge with the US Treasury, whose (remaining) gold is currently managed by the Fed.

The protection of the previous private bankers, then civil servants of the state, and of the newly joint gold reserve would be obviously required, but more easily claimed as a 'usual' protection by the state against the ruled ones.